The Return of Lee Gang-gil... Could He Be the Hidden 'Key Man' in the Daejang-dong Trial and Investigation?

Four Members Named as Original Members in First Trial... Possibility of Testimony on Roles, Structure, and Design During Prosecution Investigation

[Asia Economy Reporter Baek Kyunghwan] Lee Kang-gil, the first private developer of the Daejang-dong project, is highly likely to become a hidden key figure in the upcoming Daejang-dong trial and the investigation into allegations of higher-up involvement. Lee was the former CEO of C-Seven, which initiated the Daejang-dong project in 2009 before Hwacheon Daeyu, and is called one of the 'original members of Daejang-dong' along with accountant Jeong Young-hak and lawyer Nam Wook. In particular, he is also implicated in the 'Busan Savings Bank illegal loan case,' prompting prosecutors to closely examine his statements.

According to the legal community on the 7th, at the first trial of the 'Daejang-dong Four' held yesterday afternoon at the Seoul Central District Court, Lee was identified as one who led the private development together with them. On that day, the prosecution stated, "Nam Wook and Jeong Young-hak acted as advisory members of the promotion committee even before the designation of the Daejang-dong 1st Complex combination and the adoption of the public-private joint project, and they tried to promote a public-private joint project for their own benefit during the private-public development with Lee Kang-gil."

Lee is reported to have interacted with key members from the early stages of the Daejang-dong development project. However, after Lee Jae-myung, the Democratic Party presidential candidate, took office as mayor of Seongnam in 2010, the Daejang-dong project shifted to a public-private joint development, and Lee was completely excluded from the project.

The dedicated investigation team at the Seoul Central District Prosecutors' Office (led by Deputy Chief Prosecutor Kim Tae-hoon) handling this case has confirmed the circumstances at that time through Lee. According to a prosecution official, when Lee was summoned as a witness for investigation last month, they confirmed his specific relationships with key figures of Daejang-dong, the background of the project's profit structure design, and even whether higher-ups in Seongnam City were aware.

In the legal community, it is believed that Lee likely testified about the initial design of the Daejang-dong project and the roles of the so-called 'Four,' and since he seems to have known the reporting system of institutions holding project permits such as Seongnam City, he is expected to play a significant role in the upcoming trial process and the investigation into higher-up involvement. A lawyer with a prosecution background also stated, "Although the investigation began with accountant Jeong Young-hak's recorded statements, as controversies over the admissibility of evidence continue, testimonies from key witnesses like Lee will be decisive in proving the charges against the 'Four.'"

Moreover, Lee was deeply involved in the process by which C-Seven procured thousands of billions of won in project funds from Busan Savings Bank. The prosecution is investigating suspicions that in 2011, the Supreme Prosecutors' Office's Central Investigation Department excluded Daejang-dong-related matters while investigating the Busan Savings Bank illegal loan case. During this process, Lee is known to have delivered brokerage fees to broker Jo.

It has been confirmed that Lee participated in the Supreme Prosecutors' Office Central Investigation Department's inquiry and was summoned for questioning twice last month. Additionally, the person who defended Jo at the time was former special prosecutor Park Young-soo and former special prosecutor assistant Yang Jae-sik, who also defended lawyer Nam, who was under prosecution for allegations related to lobbying in the 2015 Daejang-dong project.

Some expect that additional testimonies from Lee and other Daejang-dong-related individuals will influence the future trial. The court said yesterday, "The goal is to conclude the trial before the expiration of the defendants' detention period," but since the 'Jeong Young-hak recordings' alone will inevitably lead to fierce disputes over the credibility of evidence, this is challenging. At the trial, the side of accountant Jeong expressed a position acknowledging the charges, unlike major shareholder Kim Man-bae of Hwacheon Daeyu, former Seongnam Urban Development Corporation Planning Director Yoo Dong-gyu, and lawyer Nam.